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Tesla’s stock fell on Monday after a new recall by China’s quality watchdog was issued on Monday for Tesla vehicles in China. Today’s recall announcement is in addition to the 123,000 vehicles that Tesla is already recalling, according to Reuters.
Tesla last month announced that it was voluntarily recalling more than 120,000 Model S vehicles after a power steering component was shown to exhibit excessive corrosion in the power steering bolts. At the time, Tesla attempted to placate the market by insisting that the corrosion would not prohibit drivers from steering the car, only that it would require “increased force” to turn the wheel.
According to China’s quality watchdog, Tesla would recall almost 9,000 additional vehicles. The model of the vehicle affected was not disclosed at the time of writing.
Tesla has experienced a rocky month or two, with Moody downgrading the EV major, on top of fatal crash reports, missed Model 3 production targets, and the escalating China/US tensions over the disparate trade between the two nations—the latter issue sparking grave concern that Tesla would be the biggest loser in the trade rift.
China—where the vehicles are being recalled—is Tesla’s second largest market but has no production presence there. As a result, the tariffs aimed at US automakers would likely hit it hard.
Tesla’s stock (NASDAQ: TSLA) fell after the announcement today, and closed the day 3.22% lower (-$9.64) at $289.66. Still, Tesla’s stock has proved time and time again that its shareholders are exceedingly loyal.
The March recall for the EV maker, announced on March 29, saw Tesla’s stock fall almost 4 percent in after hours trading that day, before falling further on the next trading day. But by April 4, Tesla stock had rebounded.
By Julianne Geiger for Oilprice.com
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Julianne Geiger is a veteran editor, writer and researcher for Oilprice.com, and a member of the Creative Professionals Networking Group.